In the first month of operation, ABC Corporation, that specializes in bicycle repairs, completed the following transactions:
Jan. 5 Started business by making deposit in company bank account of $12,000, in exchange for 1,200 shares of $10 par value common stock.
Jan. 5 Paid premium on one-year insurance policy, $1,200.
Jan. 5 Paid present month's rent, $1,040.
Jan. 7 Purchased repair equipment from Conklin Company, $4,400. Paid $600 down and balance were placed on account. Payments will be $200.00 per month for nineteen months. First payment is due 11/3.
Jan. 7 Purchased repair supplies from McKenna Company on credit, $390.
Jan. 11 Paid utility bill for October, $154.
Jan. 15 Cash bicycle repair revenue for first half of October, $1,362.
Jan. 18 Made payment to McKenna Company, $200.
Jan. 30 Cash bicycle repair revenue for the last half of October, $1,310.
Jan. 30 Declared and paid cash dividend of $800.
Create the financial statements for ABC Corporation as of January 31.
Create the Income Statement, Statement of Retained Earning and the Balance Sheet.
Statement of Cash Flows is a required Financial Statement, but is not necessary for this Project.